Mcchip Resources (MCS) AI Stock Analysis

• Market Cap: C$9.65M
• Dividend Yield: 2.9%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.57
• Revenue Growth: N/A
• EPS Growth: -60.82%
• Country: CA
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Oil & Gas Energy
• EPS (TTM): -0.05
• Shares Outstanding: 5,710,096
• 10 Day Avg. Volume: 2,381
• 30 Day Avg. Volume: 3,231
• PEG Ratio: <0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 18.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$2.00 ▲(25.00% Upside)

Mcchip Resources' strong financial performance, characterized by significant revenue and net income growth, is the most significant factor driving the stock score. The technical analysis suggests a mixed outlook with potential short-term weakness but a positive long-term trend. The valuation indicates the stock may be undervalued, offering a good entry point for investors.

Mcchip Resources Business Overview & Revenue Model

Company Description

Mcchip Resources (MCS) is a diversified resource company focused on exploring and developing mineral properties, primarily in the mining sector. The company is engaged in the extraction and processing of various minerals, including precious and base metals, which are critical for various industrial applications. MCS aims to leverage innovative mining technologies and sustainable practices to enhance the efficiency and environmental stewardship of its operations.

How the Company Makes Money

Mcchip Resources generates revenue primarily through the sale of mined minerals and metals. The company operates under a revenue model that includes direct sales to industrial clients and partnerships with larger mining corporations for joint ventures and resource sharing. Key revenue streams include the extraction of ores, refining processes, and the delivery of finished product contracts. Additionally, MCS may benefit from strategic alliances with technology providers and environmental firms, which can enhance operational efficiency and open new market opportunities, thus contributing to its overall earnings.

Mcchip Resources Financial Statement Overview

Summary

Mcchip Resources shows a strong financial trajectory with remarkable growth in revenue and net income, coupled with robust profit margins and a stable balance sheet. The company has improved its cash flow situation, but maintaining consistent cash flow stability is essential for long-term growth.

Income Statement

Mcchip Resources demonstrated a robust financial performance with a significant revenue growth rate of 171% from 2023 to 2024, indicating strong business expansion. Gross profit margins are consistently high, peaking at 98% in 2024, showcasing effective cost management. The net profit margin for 2024 is exceptionally high at 225%, driven by substantial net income growth. EBIT and EBITDA margins also reflect positive operational efficiency, with a notable recovery in profit margins compared to previous losses.

Balance Sheet

The company's financial health is solid, with a strong equity base and a low debt-to-equity ratio of 0.17 in 2024, indicating prudent financial management. The equity ratio remains high at 83% for 2024, underscoring financial stability. However, the increasing total debt over the years could pose some risk if not managed carefully.

Cash Flow

Mcchip Resources exhibited a positive turnaround in cash flows, with a considerable increase in operating cash flow to $208,800 in 2024 from a negative value in 2023. The free cash flow has also improved significantly, highlighting enhanced liquidity. Nonetheless, the volatility in cash flows over the years suggests potential underlying operational challenges that need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71M	1.30M	480.49K	560.20K	695.28K	528.60K
Gross Profit	1.28M	1.28M	452.90K	546.18K	679.79K	527.31K
EBITDA	-960.30K	452.27K	-335.45K	-150.47K	-161.29K	-96.19K
Net Income	1.14M	2.94M	563.13K	-374.54K	1.23M	1.79M
Balance Sheet
Total Assets	12.54M	12.83M	10.34M	9.80M	9.65M	8.19M
Cash, Cash Equivalents and Short-Term Investments	11.22M	10.83M	8.84M	8.28M	7.78M	6.42M
Total Debt	2.67K	1.80M	1.82M	1.56M	830.00K	632.01K
Total Liabilities	1.73M	2.15M	2.10M	1.78M	1.02M	831.53K
Stockholders Equity	10.81M	10.68M	8.25M	8.03M	8.63M	7.36M
Cash Flow
Free Cash Flow	1.31M	208.80K	-149.10K	140.96K	121.56K	34.00K
Operating Cash Flow	1.31M	208.80K	-149.10K	140.96K	163.23K	55.26K
Investing Cash Flow	2.45M	291.38K	-208.62K	-169.54K	-86.53K	593.77K
Financing Cash Flow	-2.26M	-537.14K	-85.53K	420.20K	-5.91K	-614.34K

Mcchip Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MCS, the sentiment is Negative. The current price of 1.6 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.78, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MCS.

Mcchip Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	73 Outperform	C$9.65M	8.50	11.04%	2.90%	―	-60.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CBV	51 Neutral	C$2.32M	―	-10.75%	―	-19.02%	-352.70%
CBI	34 Underperform	C$4.16M	-4.41	-32.41%	―	―	33.77%
CRI	32 Underperform	C$32.93M	―	-312.88%	―	―	58.99%

Mcchip Resources Corporate Events

McChip Resources Announces Shareholder Distributions and Strategic Plans

McChip Resources Inc has announced plans to distribute cash and assets to its shareholders following the liquidation of a majority of its assets, which include liquid securities of other public companies. The company intends to distribute approximately $11.2 million in cash and securities holdings after settling liabilities and expenses. A special shareholder meeting is scheduled for October 1, 2025, to vote on a resolution for a reduction in stated capital, allowing for a distribution of up to $5.2 million. This move is aimed at maximizing shareholder value, with further details to be disclosed in a subsequent press release. The distributions are subject to shareholder and regulatory approvals, and the board retains discretion over proceeding with the plan.

The most recent analyst rating on (TSE:MCS) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Mcchip Resources stock, see the TSE:MCS Stock Forecast page.